Author Topic: PBOC allows Yuan to depreciate to counter trade tariffs  (Read 37 times)

Offline Talk Merit

PBOC allows Yuan to depreciate to counter trade tariffs
« on: July 19, 2018, 03:49:12 PM »
One of the advantages that come from a depreciating currency is an improvement in a country's competitive position in world trade. For many years, China sold the Renminbi to buy dollar assets, and this kept the price of the Yuan undervalued to boost their exports. They have been selling these bonds recently, and this is one of the reasons that the Yuan has increased in value. It looks as if the PBOC is allowing the Yuan to depreciate again, and this is possibly a retaliation for the tariffs imposed by Donald Trump.

https://www.youtube.com/watch?v=E_Da6b6LhK0